Supreme Court to Form Panel on Recovery of Outstanding Royalties on Minerals

Supreme Court to Form Panel on Recovery of Outstanding Royalties on Minerals

The Supreme Court announced on Wednesday that it will form a bench to hear petitions from mineral-rich states like Jharkhand, which seek recovery of outstanding royalties and levies on mining rights and land use from the central government and mining companies amounting to thousands of crores.

Chief Justice D.Y. Chandrachud headed a three-judge bench that previously ruled on July 25 with an 8:1 majority that legislative authorities have the right to levy duties on mining rights. Following this decision, the Supreme Court clarified on August 14 that the ruling would not have retrospective effect and that mineral-rich states would not be permitted to collect royalties and levies on mining rights retrospectively from April 1, 2005. This has restricted recovery of dues accumulated over 12 years.

Senior advocate Divan, representing Jharkhand, requested the court to set up a bench under Justice Manoj Mishra to hear petitions concerning legal barriers to the recovery of outstanding dues. Responding to this, the Supreme Court indicated that a separate bench would address these petitions and suggested that this could include ongoing related cases under Chief Justice Chandrachud.

In a related matter, the Supreme Court dismissed petitions challenging the Kerala High Court's directive, which included a Rs 10 lakh fine for challenging the orders of the National Medical Commission (NMC). The bench reaffirmed its expectation that the NMC, as a state body, should function efficiently and fairly.

These developments reflect the ongoing legal tussle over the authority and scope of levying royalties on mining operations, which have significant financial implications for both state governments and private mining companies. The formation of a dedicated bench aims to address these complex legal and administrative issues comprehensively.